The New Industry Ventures LLC develops Russian oil production technologies
Published: 29 January 2020
The venture Fund "New Industry" (New Industry Ventures - a joint venture fund of Gazprom Neft, Gazprombank, the Russian Venture Company (RVC) and VEB Ventures) has launched the first investment project aimed at developing technologies in the field of multi-barrel well completion.
"New Industry" has invested in the company "ADL Completion", specializing in development and production of technological solutions in the field of multi-barrel and multi-hole well completion (MZS). The innovative startup has received all the necessary approvals, including the approval of the independent expert technical council and the investment committee of the Fund. The volume of investments amounted to 100 million rubles.
The project supported by the Fund is aimed at developing the technology of the Ministry of Health, which allows to build side shafts in existing wells, while maintaining the flow rate of the main trunk. The solution has passed R&D, bench tests, has a prototype of the system and is ready for mass production.
The support of the New Industry Foundation will allow the developer to continue improving the MHS technology, including intelligent completion and completion with multi-stage hydraulic fracturing, to solve more technically complex tasks, as well as expand production capacities.
"Today, a significant part of our projects is related to the development of hard-to-recover reserves. Their success directly depends on the level of technologies used. We don't always have the solutions we need on the market, often we have to create them together with partners. The implementation of the first investment project of the New Industry Foundation will provide an opportunity for the development of a domestic innovative solution that has significant application potential for high-tech drilling in fields with complex geology. Such projects are needed not only by our company, but they also allow the entire Russian oil industry to develop," said Vadim Yakovlev, Deputy General Director for Exploration and Production of Gazprom Neft.
"In the next few years, the multi-barrel completion will move from a premium to the category of an economically profitable and in-demand product for subsoil users," Tatiana Morozova, CEO of the New Industry Foundation, comments on the deal.
"Considering the professionalism of the ADL team, the demand for such localized technologies, as well as the company's development prospects, the Bank and other Fund participants had a full consensus on the first transaction, which, of course, is always the most responsible. We hope that the experience of Gazprombank and our partners in the "New Industry" will help ADL Completion to strengthen its market position," said Alexander Stepanov, Deputy Chairman of the Management Board of Gazprombank.
"The oil industry around the world is becoming more and more high-tech. Many traditional fields have almost been developed, the production level is falling, the time of "difficult" oil is coming. This is especially true for Russia, where undistributed reserves are located in hard-to-reach and ecologically fragile regions. The New Industry Venture Fund was created to support innovative companies and startups creating breakthrough technologies in the oil and gas sector. The high-tech solutions of ADL Completion have proven their effectiveness by successfully passing field tests at the facilities of the largest Russian oil companies. The developments of ADL Completion have high competitiveness and will be widely in demand both in Russia and abroad," said Alexey Basov, Deputy General Director - Investment Director of RVC.
"We are glad that the fund has quickly entered the investment phase. The deal with ADL Completion is certainly remarkably interesting both in terms of technology and the demand for the product, and in terms of the quality of the partners who are now in the cap table with us. We expect 2020 to be a productive and dynamic year for the fund," said Veronica Fiedler, Senior Managing Director at VEB Ventures.
Gazprom Neft is a vertically integrated oil company. The main activities are exploration and development of oil and gas fields, oil refining, production and marketing of petroleum products. The structure of Gazprom Neft includes more than 70 oil-producing, refining and marketing enterprises in Russia, the countries of the near and far abroad.
Gazprom Neft is among the world's largest public companies in terms of proven reserves of liquid hydrocarbons and is one of the leaders in terms of their replenishment rates. In terms of oil production and refining, Gazprom Neft is one of the largest companies in Russia.
The main shareholder of the Company is PJSC Gazprom (95.68%). The remaining shares are in free circulation.
Gazprombank is one of the three leaders of the banking industry in Russia, as well as one of the largest financial institutions in Central and Eastern Europe.
Gazprombank provides a wide range of services to corporate and private clients. The Bank serves key sectors of the Russian economy – gas, oil, chemical and petrochemical, metallurgy, electric power, mechanical engineering, transport, construction, communications, agro-industrial complex, trade and other industries.
Gazprombank's retail business is focused on providing modern high-tech products and services. At the beginning of 2020, the Bank serves about 5 million individual customers, the retail loan portfolio by the end of 2019 is more than 550 billion rubles, the retail deposit portfolio is more than 480 billion rubles.
JSC RVC is the state fund of Funds, the Institute for the Development of the venture industry of the Russian Federation. The main objectives of RVC JSC are to stimulate the creation of its own venture investment industry in Russia and to perform the functions of the Project Office of the National Technology Initiative (NTI). The authorized capital of RVC JSC is more than 30 billion rubles. 100% of the capital of RVC belongs to the Russian Federation represented by the Federal Agency for State Property Management of the Russian Federation (Rosimushchestvo). The total number of funds formed by RVC JSC has reached 29, their total size is 64.4 billion rubles. The share of RVC JSC is 37.3 billion rubles. The number of portfolio companies of RVC funds is 180. The total amount of funds approved for investment is 15.9 billion rubles. www.rvc.ru
VEB Ventures (formerly VEB Innovations) is a company of the VEB Group. The Russian Federation, created to support high-tech projects through direct transactions and management of venture funds. VEB Ventures' priorities include financing promising companies with its own funds, private and public funds, as well as assistance to Russian startups in entering international markets. The company offers projects not only venture investments, but also operational management support tools, as well as access to financial products of VEB.RF Group companies. This makes it possible to form support schemes for Russian innovative companies considering their individual needs, including to facilitate entry into international markets.
ADL Completion is a startup founded in 2017 specifically for the commercialization of developments in the field of well completion.